(NYSE:UNH) OLDWICK, N.J.--(BUSINESS WIRE)-- #insurance--AM Best has downgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a-” (Excellent) from “a” (Excellent) and the Long and Short-Term Issue Credit Ratings (Long-Term IR; Short-Term IR) of UnitedHealth Group Incorporated (UnitedHealth Group) (Minnetonka, MN) [NYSE: UNH]. Concurrently AM Best has downgraded the Financial Strength Rating (FSR) to A (Excellent) from A+ (Superior) and the Long-Term ICRs to “a+” (Excellent) from “aa-” (Superior) of the health
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How will the AM Best downgrade affect UnitedHealth’s cost of capital and financing options?
What potential pressure could this rating change place on UNH’s dividend sustainability and payout ratios?
How does UnitedHealth’s new rating compare to other large health insurers and could it trigger relative valuation shifts in the sector?